Purpose of Assignment
The purpose of this assignment is to help you understand the balance sheet presentation for the liabilities of a company.
Resources: Financial Accounting: Tools for Business Decision Making
Prepare the liabilities section of O’Brian’s balance sheet using the following information:
- Accounts payable $157,000
- Notes payable (due May 1, 2018) $20,000
- Bonds payable (due 2021) $900,000
- Unearned rent revenue $240,000
- Discount on bonds payable $41,000
- FICA taxes payable $7,800
- Interest payable $40,000
- Notes payable (due 2019) $80,000
- Income taxes payable $3,500
- Sales taxes payable $1,700
The Liabilities Section of O’Brian’s balance sheet must be 525 words. Should be written on the Spreadsheet workbook.
Show work on the Excel® spreadsheet.